Experts use accounting information to assess how a business is doing. ABSTRACT Accounting and corporate reporting can be seen as a language for specific purposes. You want to talk business! Then you have potential investors, and many times financial analysts, who analyze companies on behalf of these potential investors. Text. By clicking Accept All, you consent to the use of ALL the cookies. IFRS gives businesses more flexibility. Bloomfield (2008, p. 433) recognised that 'people communicate through written natural languages by selecting words from a standard vocabulary according to the rules of grammar, then organizing those words into sentences Well, the managers in the company, they are the ones responsible for preparing this information and presenting it to the shareholders of the firm. The cookies is used to store the user consent for the cookies in the category "Necessary". The next session of Finance for Non-Financial Professionals runs June 3 - 5, 2019 in Toronto, Ontario. Necessary cookies are absolutely essential for the website to function properly. Competitors, who want to benchmark their operations with those of other firms. It also gives you the figures for buying more manufacturing equipment, raw goods and the price of hiring more workers. The perfect personalised gift for any occasion, a set of custom hand engraved magic beans is guaranteed to have the recipient's jaw drop to the floor. O'Brien has taught business law, accounting and tax courses for more than 25 years at Notre Dame. Small business owners can save a lot of time and money in the long run by hiring an accountant. Its the language of business, and its an imperfect language. If you dont know what the numbers mean, and you dont know the right questions to ask, your effectiveness as a leader is minimized. Music and art are just some examples. According to the Foreign Service Institute (where U.S. diplomats go to get language training), the average English native speaker needs approximately 2,200 hours to get to an advanced level in Arabic! Financial accounting information appears in financial statements that are intended primarily for external use (although management also uses them for certain internal decisions). Why is Accounting Called the Language of Business? That could, for example, lead to an investor experienced with GAAP making a mistake when appraising financial statements written under IFRS. In that case, you have to understand what Warren Buffet was talking about when he called accounting the language of business.

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